Kick Off 2023 Using the Right Technical Indicators with Leading Broker XM

To start the new year, traders and investors are reviewing and accessing their strategies for the coming months. Technical analysis plays a big role in making trading decisions, and many traders utilise technical indicators to improve their results. Keep reading for a list of great technical indicators you can use for free with XM.

What is Technical Analysis?

Technical analysis is the study of past and present price movements to make educated predictions about future price movements. It’s based on the premise that history repeats itself, so when analysing the market from a technical perspective, patterns are identified, and they determine the likelihood of the same price movement being repeated in the future.

Why Do Traders Use Technical Analysis?

Technical and fundamental analysis are the two most common forms of market analysis. The former focuses on price patterns, and the latter focuses on news releases.

Investors use technical analysis to look for recurring patterns in charts that suggest the future course of prices. By spotting those patterns in current prices, they can determine which assets to trade, and when to open a position with the expectation that the pattern will unfold as it has in the past.

Of course, as with any other method, there is no guarantee that the expected price movement will indeed happen again. However, trading without analysing the market at all is likely to lead to significant loss.

What Are Technical Indicators?

Studying past charts and spotting patterns is easier said than done. That’s why technical analysts use indicators to save time and derive more accurate results.

Technical indicators are an element of technical analysis. They are defined as mathematical patterns, that use a mathematical formula to derive data points from past prices and volumes of assets. They can also capture investor psychology and sentiment.

Traders use indicators tweaked based on historically adjusted returns, and their investment objectives, to evaluate and identify trends and trading opportunities. Usually, an indicator is shown graphically on the platform and compared with the chosen price chart for accurate analysis.

XM offers some of the most popular indicators for free including the Bollinger Bands, Ichimoku, River, ADX and PSAR, and Ribbon indicators.

In addition, traders can use a variety of tools to support their technical analysis, including a daily technical analysis update provided by XM’s experts, technical summaries that show the main trends, current price moves, and extreme moves on the biggest instruments, and they can learn about technical analysis through educational videos.

About XM

XM is an internationally established trading and investment firm, with over 5 million clients, from over 190 countries. Armed with multiple international licenses, XM offers competitive services for retail traders, investors, and affiliates.

Since 2009, XM has proven to be fair, trustworthy, and dependable. Traders can access over 1,000 instruments on more than 10 platforms, including the XM app. The award-winning broker is known for low-cost accounts, exciting promotions, excellent support, and outstanding live education.

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